Won hits a new low this year as stocks continue to retreat

Finance

Published: 12 Jul. 2022, 17:28 Updated: 12 Jul. 2022, 17:39

Won hits a new low this year as stocks continue to retreat

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,317.76 points on Tuesday, down 22.51 points, or 0.96 percent, from the previous trading day. [YONHAP]

Stocks retreated for a second straight session Tuesday, weighed by concerns about corporate earnings and a surge in new coronavirus outbreaks. The local currency closed at 1,312.1 won against the dollar, sharply up 8.2 won from the previous session's close.

It marked the lowest closing so far this year and also the lowest level since July 13, 2009, when the won ended at 1,315 won against the dollar.

The Kospi decreased 22.51 points, or 0.96 percent, to close at 2,317.76 points.

Trading volume was relatively small at about 374 million shares worth some 6.3 trillion won ($4.8 billion), with losers outnumbering gainers 772 to 129.

Institutions sold a net 238.6 billion won worth of stocks, and foreigners offloaded a net 45.0 billion won, while retail investors bought a net 267.5 billion won.

The Kospi came off to a lackluster start, tracking overnight falls on Wall Street amid woes over a global recession and a semi-lockdown in Macao due to the pandemic.

The Nasdaq composite sank 2.26 percent, and the Dow Jones Industrial Average declined 0.52 percent.

Investors are cautious about the U.S. consumer price index data, a gauge for inflation, and the Bank of Korea's rate decision slated for Wednesday.

The new Covid-19 cases also pushed the investors to the sidelines. Korea's new Covid-19 cases soared to a two-month high of over 37,000 on Tuesday, with health authorities mulling a new set of antivirus measures.

In Seoul, Samsung Electronics dropped 1.19 percent to 58,100 won, with SK hynix losing 0.43 percent to 93,300 won.

Naver dipped 2.91 percent to 233,500 won, and LG Chem slid 1.53 percent to 514,000 won.

Among gainers, LG Energy Solution grew 1.52 percent to 401,000 won, and Celltrion gained 0.81 percent to 187,500 won.

The Kosdaq lost 16.26 points, or 2.12 percent, to close at 750.78 points.

Bond prices, which move inversely to yields, closed higher. The yield on three-year government bonds lost 3.0 basis points to 3.294 percent, and the yield on the benchmark 10-year government bond dropped 8.9 basis points to 2.99 percent.

BY CHO JUNG-WOO, YONHAP [cho.jungwoo1@joongang.co.kr]